Descriptions

Wholesale demand systems for live reef food fish in Hong Kong are analysed using the Linear Approximate Almost Ideal Demand System (LA/AIDS). Results suggest that price elasticities of demand are inelastic, with relatively high-valued species exhibiting greater elasticity than relatively low-valued species. Cross price elasticities are negative suggesting that different live reef fish species are complements. Live reef fish are found to be normal goods, with relatively high-valued species being less expenditure-elastic than relatively low-valued species. SARS is found to shift expenditure away from high-valued species to low-valued species. There is no evidence that Chinese New Year has a significant impact on demand.